China penalizes Japan firms for dumping steel

Kyodo

China introduced antidumping measures Thursday against cold-rolled stainless steel sheets imported from Japan and South Korea, the official news agency Xinhua said.

The Ministry of Foreign Trade and Economic Cooperation said in a statement that all importers of cold-rolled stainless steel sheets from Japan and South Korea will have to hand in a certain amount of cash as guarantee money to Chinese Customs, effective Thursday.

The preliminary ruling by the ministry and the State Economic and Trade Commission says such products have been dumped, or sold at unfairly low prices, injuring relevant Chinese industries.

The ruling covered six South Korean firms and nine Japanese companies. The Japanese companies include Nippon Steel Corp., Nisshin Steel Co., Kawasaki Steel Corp., Nippon Metal Industry Co. and Sumitomo Metal Industries Ltd.

The dumping margin was set at 26 percent to 75 percent for the Japanese companies and between 4 percent and 27 percent for the South Korean firms.

The ministry began dumping investigations into imported steel sheets in June last year at the request of Chinese companies.

In a statement issued Thursday in Tokyo, Nippon Steel’s public relations section said, “The product we export to China is not hurting Chinese industry because it is a high quality product that cannot be made in China.”

The company said it cannot understand the ruling approving such high taxes, adding it believes that if China conducted a fair investigation it would reach a final conclusion supporting the company’s view.